The Importance of Selecting the Right MSP for Your Collections and Recoveries
“Creditors and debt buyers are becoming increasingly focused on customer rehabilitation and retention... Outsourcing services can result in significant gains in this area,” says Christian Jacob, Managing Director at Qualco UK.
Debt providers are finding themselves in a very different space than they were in a few years ago. The financial crisis has resulted in major change.
Creditors and debt buyers are concerned about the scale of the provisions they must hold against bad debts, about the cost of acquiring new customers in a highly competitive market place and achieving higher levels of cost control and profitability.
An optimal solution to collecting overdues
Meanwhile, the Financial Conduct Authority’s (FCA) requirements around systems and controls have caused everyone to take a long hard look at what’s in place and whether it’s fit for purpose.
Many creditors are looking to rationalise their supplier base to retain sufficient oversight and reduce risk in this area.
Most creditors and debt buyers have a long wish list of development work they want to undertake but lack either the technical ability or resources to do it. So service providers try to bring their ideas to life. But at the same time, MSPs have to enable analysts to see if the reality matches their models and forecasts – and to select an optimal solution to collecting their overdues.
Often MSPs find that because they have been through this process many times with banks, utilities, retailers and debt investors, they can expedite processes faster than clients are able to do on their own. MSPs can also come up with a broader range of potential options.
Put the customer at the heart of your collections and recoveries strategy
Creditors and debt buyers are becoming increasingly focused on customer rehabilitation and retention. Outsourcing services can result in significant gains in this area.
Some debt collection partners in the UK are now receiving accreditations such as Investors in Customers, and achieving net promoter scores (NPS) of +39.
This is exceptional and points to the new reality that the debt collection and recovery industry is no longer seeking brand protection for clients, but is now collectively delivering brand enhancement.
This provides benefits to debt providers, regulators and of course to customers and points to the managed service model as a very effective way of helping customers whose accounts fall into arrears.